Skip to main content

tv   MONEY With Melissa Francis  FOX Business  December 24, 2013 5:00pm-6:01pm EST

5:00 pm
they dry the grapes out first. tracy: this is so wonderful. [inaudible] >> thank you. ♪ >> the wage rage continues. have the fast-food strikes around the country been making any headway? are people protesting actually employees or just union flaks? we went live tt the streets to find out. that is where we'll start right now. because even when they say it's a not, it is always about money. melissa: a huge topic of discussion and contention around the country right now. the wage wars, massive fast-food strikes. they have been happening periodically. the latest taking place earlier this month. hundreds of workers walking off the job, protesters calling for
5:01 pm
minimum wage hike up to $15? but was everyone out there actually workers who would be making that money? we wanted to hear first-hand from someone in the protest. louisiana vasquez is mcdonald's crew member who worked at the fast-food chain for six months. why are you on strike today? >> well, well first i want to say good evening. melissa: good evening to you. >> honor to have me here. basically i'm actually on strike today for $15 and a union. and like i said to just have more stable life. melissa: louis, how many jobs have you had before this? i assume you're there working for minimum wage. have you had a lot of other minimum wage jobs? >> well, actually that is a very good question. i've actually had one other job which wash minimum wage. we're talking about in summer of 2012. actually working at cvs through
5:02 pm
the summer youth employment program. melissa: so, luis, it sound like -- >> for about a month. melissa: you don't have a lot of work experience. i mean you're the exact kind of person who comes in and gets that opening job in order to try and move up the ladder. so it is hard for me to understand what your complaint is? >> well, my complaint is this. the following. you know, i'm currently supporting a family of six, six people, you know, single mother, and five younger siblings, that i'm currently helping to support and i mean, i can barely survive on the minimum wage that i'm earning currently which is 7.25. melissa: and so have you looked into getting some training so that you could get a different job that would pay you more money? >> yes. i've actually have, like i said, i have made the attempt to do
5:03 pm
that. you know, hasn't gone as well unfortunately, which is why i've been forced to stay put with fast-food for temporarily. melissa: luis,me the reason whyi say this because 62% of the people who work for minimum wage are also students. so i'm wondering why, are you currently in school right now while you're working this minimum wage job? >> yes i am. yes, i am. i am a full-time college student. i do work a part-time job. the reason i work the part-time job to support my family which i can hardly do. melissa: well i think that is why you're in school so you can get a better wage and a better job but i don't know if you understand that by raising the economists say it will cost half a million jobs of the so are you okay with the idea that you could get fired as a result of raising the minimum wage? what would youim do then? >> well, i mean, personally i'm not really worried about getting
5:04 pm
fired. actually my third strike. you know, just, my third protest. you know, i've obviously seen results. i have seen like better respect. actually from other fast-food workers. we've seen like, like i said, more respect, you know, the minimum wage, like they get more hours. getting more hours, but slowly surely the minimum wage is increasing. melissa: uh-huh. right now, while you're out there striking, did you have a shift you're not going to? you talk about youru family wh3 is at home that needs food. are you not getting paid right now and not feeding them as a result of being out on strike? >> well, to kind of, to really explain that, there's actually this strike fund that's actually going on where basically all the workers kind of collaborate together and they put some fund
5:05 pm
together to kind of support the fast-food workers that are strike, you know, that, this is kind of support. just in case they're missing -- melissa: do you know where the money is coming from? did you putth money into that fd or is that fund, from labor unions trying to organize you so then you can pay them dues? >> no, well, like i said, well, i, the money, like i said, comes from the union. obviously people that are actually, youly know, supporting us. you know, other workers as well. and like other organizers that are actually supporting us. melissa: all right. luis, good luck to you. thank you for coming on. stay in school so that you can get more training, so that you can not work in mcdonald's and support thosed' people. i myself started in a minimum wage job. you need to get skills to move on, okay, my friend? >> thank you so much.
5:06 pm
melissa: and the war goes on. to get some real reaction what is going on, i turned to former chairman of the national labor relations board, peter some berg. i think a lot said in that interview speaks for itself. what is your reaction? >> it certainty does. you asked some very good questions and you hit it on the head and so did he. these are entry level, seasonal part-time jobs, when the fast-food worker improves himself and graduate from school they move on to another job but the vibrant economy as ours need these kind of jobs. melissa: right. >> the labor unions know this they know what kind of jobs these are, and they know the franchisees simply can't afford to pay $15. this willpl result in decreased employment andce higher prices. i'm sorry. melissa: i don't know whyme he would expect to support a family of six people on his first or second minimum wage job while he is a full-time student. i mean that's not what those jobs are for.
5:07 pm
you don't expect those people to be trying to support a family. you expect them to be students who are learning a skill, also learning money at the same time so they can be in sccool. so then they can have a family and be able to support those folks. i mean i don't thinkup the probm is the amount of money that is mcdonald's.t i think there are other problems in that situation. >> absolutely. and, and again, you know, this emphasizes the fact of what kind of jobs these are but, melissa, i was going to say, the fast-food franchise owners simply can't afford to pay $15. this is a very low margin business. i ran the numbers. if you have a small subway telling $365,000 worth of goods, food, in a year, the owner will earn, $59,000 after paying its expenses. and out of that $59,000, it is going to have to spend tens of thousandsdollars every four to seven years which it is obligated to do under its
5:08 pm
contract to ren they straight and redecorate the premises. melissa: luis, bless his heart, told our producers the ceo of mcdonald's makes so much money he should be sharing that. i don't know if he realizes only 15% of franchises are owned by mcdonald's. the rest are franchises. they operate on an margin. you make the point less than 5%. the franchise owners in these situations are not getting rich. even if they gave up some of their profit. that would be a portion of this theye, need to fire people, cut back workers and economists say raise prices 20%, if not 50% to cover this, right? >> that is right, melissa. can i add another point? melissa: sure. >>iz organized labor, instead of demonstrating outside of mcdonald's should demonstrate outside of the white house and demonstrating outside senator harry reid's office. they are the architects of the economy which have given us low employment, shrinking middle class and the disparity, if you will, between the upper and
5:09 pm
lower brackets in society. melissa: yeah. >> they should be demonstrating for approval of the keystone pipeline, for repeal of job-killing obamacare, for an end to the war on coal. you know, variety of different things that would really, that would create the kind of jobs that we need and that this fellow, who was really quite an articulate, pleasant guy, could take. melissa: i think we all learned a lot from that and i hope you at home will tweet me and let me know what you think. from nothing to selling their business for more than $50 milllon, the founders of honest tea, know how to turn a startup inno wild success. their new playbook tells us how to do it yourself. you have got to hear this.
5:10 pm
5:11 pm
5:12 pm
5:13 pm
melissa: do you want the honest truth about how to be successful? then listen up. honest tea, co-founder seth goldman and barry started making tea in their kitchen and turned it into a company that sold more than $50 million. for everyone out there like me dying to start their own business, these guys wrote a virtual playbook how exactly to do it. seth and barry themselves came to show us how you can follow in their footsteps. it is cartoon style which is
5:14 pm
fantastic. makes it easyrt for everyone to read. much your story of exactly how you did it in bite-sized pieces we all can read andll enjoy and understand and you break out the exact lessons. before we do the how, tell me the why? seth, you started out wanting to make the world a better place. you went intoov government and charity. i went into the book and you said something made my heart sing, business can be bigger agent of chain than government or? how. >> in the united states, we have a country that ranks 40th in average life expectancy even though we're the wealthiest country in the world. government will not solve that. what we live and what we eat and is got to change. honest tea are a looking to cree not just healthy products but delicious products that can help change people's diets. >> what is the problem out there that government is trying to
5:15 pm
solve that you think business could do better? >> well, if we could have 100 million a billion people drinking honest tea, health benefits of green tea, less sugar. changes health care. melissa: that is not just a commercial for honest tea? >> other products too. melissa: other food companies went out there,th one of the points you made so great, if more food companies figured out a way to make something healthy and tastety it would be a great witness and slim down kids. >> great business being healthy. melissa: tastety and healthy, tastety first. i like that. there were aik lot of things in the book, a lot of times you guys got to a crossroad and you did something crazy that was unexpected. there were a lot of different points along the way. you did something where people would have given up at that point. what is craziest thing that happened to you along the way? >> craziest thing we ever did was writing a book which gave away all of our secrets. you think about corporate spies. they want to give the inside scoop. gave our g recipes, business pl, marketing strategy, you name it.
5:16 pm
you don't to spy on us. basically we've given it all away open source. >> already done it and sold your company to h coke. you don't need it anymore. >> i'm still in business, running the company. it is a whole approach to business really, that we're sharing. not that just we want to share, we want others to copy it. not necessarily into the organic bottled tea category but across the business world. melissa: is there another category you think would fit this mold perfectly? is there another business you're thinking about? >> look at the snack world, there is lot of products where the health function could be better. there is, a lot of snack foods taste great but not necessarily helping our population get any healthier. melissa: what is the biggest mistake that you see startups? you see, you know, kids come, to business school all the time wanting to get out to do things. you studied this problem forever. >> somewhat paradoxical. i think a big mistake many companies make taking on too much money. melissa: interesting. >> and soon the problem is, too much money can make you stupid.
5:17 pm
and you spend it as if it is not yours. melissa: feel like too much money is never enough. that is why we named the show "money." i may have to throw you -- you may have to go. >> when you make mistakes they end up being bigger and more costly mistakes. when you need to raise money the next t really in the hole. when you starton off, i think being s a little more conservate about what you take can be smarter move. t investor you want the entrepreneur to spend the money like spending it out of their own wallet. melissa: yeah. >> o making sure every decision can be justified. melissa: and another thing that you say and there are a lot of people, we have fran chase friday on the show, people go out to think about going into business for themselves, if they don't have the novel idea but take the idea already working which makes a lot of sense. you said don't go into business you're only 50% passionate about. one of the great stories you won business school prize. >> that's right. melissa: diaper, embarassed to mention it.
5:18 pm
urinary tract infection test inside of it. you're like, i'm not sure i want to do this for a living. may be a genius idea, may make money, but i don't want to be the face of this product. >> what is so clear when you're starting up a business you have to know you will have worse financing than the competition, worst distribution, worst cost of goods. so you have to believe in it more than 100%. you have to be willing to get up at 3:00 in the morning through the night and do all the extra things you need to do. passion, you can't just sort of be care about it. you have to really believe in it. melissa: before we run out of time. one problem you run into again and again hadem this book. this something everybody can relateom to. when you come up with idea something you want to do, no, that is not the way it is done, there is a reason we don't do it that way. it doesn't sell. you can't market it, blah, blah. there is a reason why this kind of thing doesn't sell and hasn't been done. how do you know when the majority is right and you're crazy and when your idea is
5:19 pm
-@genius? how do youde know? >> i think that the challenge here is when there's a hole in the market is it opportunity or is it a mistake? one way ofma telling is, is thee a reason for this? that is, in our case we were saying the way people drink tea, they don't put 10 teaspoons of sugar in it. they only put one or two. we weren't trying to change what people do. we wanted to give them the product they know and love. melissa: didn't exist -- >> in bottled form. melissa: what are the two main questions at beginning? whatni problem are you solving? >> you have to create a great product. no one will give you shelf space. they're nothe saying please come on my shelf. once you succeeded the question what happens, will you be copied? if you're copied will you still succeed? that second problem is the greater challenge. melissa: that is a great book. i will hold it up one more time. i don't know if we have pictures of inside, you can see it is all cartoons. if you're afraid of reading a long bookre and entertained and dazzled along the way. i also love the way at end of
5:20 pm
big chapters you break out what happened and lesson. very easy to follow along. great how-to book and highly recommend it for people thinking about starting a business. many of you are in this economy. check it out. coming up on "money" if you're manging bank on fantasy football you're a great investor. ii case you didn't know it we have the star nd creator of the fxx's the league here to prove it. do you ever have too much money. ♪
5:21 pm
mm. mm-hmm. [ enne revs ] ♪ [ male announcer ] oh what fun it is to ride. get the mercedes-ben your wish list at the winter event going on now -- but hurry, the offers end december 31st. [ sant] ho, ho, ho! [ male announcer ] lease the 201glk350 f $419 a month at your local mercedes-benz dealer. [ male announcer ] if we could see energy...
5:22 pm
what would we see? ♪ the billions of gallons of fuel that get us to work. ♪ we'd see all the electricity flowing through the devices that connect us and teach us. ♪ we'd see thatlmost 100% of medical plastics are made from oil and natural gas. ♪ are made from oil anan industry that supports almost 10 million americanobs. li takes energy. and no one applies more technology to produce american energy and refine it more efficiently than exxonmobil. because using energy responsibly has never been more important. energy lives here. ♪ just by talking to a helmet. it grabbed the patient's record bore we even picked himp.
5:23 pm
it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and adiums. but, ocourse, 's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before. [ female announcer ] today cisco is connecting the internet of everything. [ bagpipes and drums playing over ]
5:24 pm
[ music transitions to rock ] make it happen with the l-new fidelity active trader pro. it's one more innovativeeason serious investors are choong fidelity. get 200 free trades when you open an account. melissa: huddle up, "money" viewers. turn fantasy into reality and play money into cold hard cash. for 24 million of you you are making big decisions. did you know if you're scoring high on your draft you could actually be a great investor too? touchdown! we brought in a line up with a star of the hit show about a fantasy football league, steve. he is known as kevin from the "the league." and writer creator, producer jeff schaefer and our own "money" expert of course and fox contributor,
5:25 pm
scott martin. so watch and learn. you guys both manage all of your money. totally on top of it. you're fantastic. >> absolutely. melissa: without question. >> i'm literal he not allowed to open my own mail. melissa: this is what my audience knows. you're great at fantasy football. you won your own league last year although this year not doing as well but still. >> yeah. melissa: so you could be a championship investor. we're here to prove it. number one tip, don't tinker with yourhe lineup. >> you can not tinker. if you got a good lineup, players will have up and down seasons. you've got to stick with them. in faat i think best example is -- >> john. john is the gentleman who plays taco on our show. sweet boy from canada, doesn't know much about the nfl. forgets even when the draft is. so he auto drafts every year. this year he has almost, i think undefeated record. >> yeah. he is the taco of our show is the taco of our league and
5:26 pm
beating all of us. that is the thing. you can't tinker and especially do not drunk tinker. >> no. >> what you'll do, end up looking through players like they're old girlfriend on playbook, willies ma gay he, you were great in denver. >> miss you so much, brandon jacobs. melissa: saying don't do it. scott, what do you think? is that good investing advice? >> it actually makes a lot of good sense. diversified portfolio a little bit of this, a little bit of that but not too much of this or that. utilities, energy, pharmaceuticals. hey, maybe, for him, maybe like canadian stocks. something to mix into your portfolio so that you have a diversified portfolio because you know, not everybody will win every week, right? peyton manning could have a good week, wutilities could have a good week. energy same thing with brandon jacobs. reality a lot of little bit. so it works out. melissa: donnt trade drunk. good advice.
5:27 pm
>> he is probably trading heavily in pharmaceuticals. >> and drunk probably. melissa: your next rule, don't be afraid of unknown players. why is that? >> yeah. because i mean, the sexy names out there aren't always people that are going to produce the most. you can have guys like -- >> al shown jeffries this year. >> bell. >> bernard. >> julius thomas. did you know who the people were at start of the season? do you know who they are now? 24 million americans are going, why didn't i know about them sooner. >> should have done that. >> so you've got to know when, when these people are starting to hit it big. @ust like in the stock market or trying to make it to a truck stop restroom, being too early can off then be same as being wrong. so you have to use caution. melissa: scott, you want to try to follow that how get the truck stop thing over to investing advice? go ahead. take it away? >> you never know when you run into sea bass whether you wronged him. stocks are exactly the key,
5:28 pm
melissa. , when you look at investing mile-an-hour start of the year, some of the biggest names are one that is perform the best over year. big names like apple, caterpillars, ges, microsofts, hewlett-packards, most well-known players and well-known stocks don't always do great. you have mueller water, questions c.o.r.e. pharmaceuticalskn. nobody knows the who they were. you sure do now. they're up 25, 50% on year. melissa: involves a lost research and some luck. don't be frayedea is the bottom line. third pick, don't let them talk to spending first two draft picks on runningbacks. >> especially 14-theme leaks. not always best idea. melissa: why is there pressure to do that. >> so much misinformation going out there. there is, i like the seattle defense. ion am seattle seahawks fan. at each draft i know the seattle draft. they have injuries.
5:29 pm
suspensions. don't touch them. i drafted seattle defense. luckily in the business world people are honest aboveboard. that is why man at bear stearns says. melissa: all right. scott what do you think about that? how do you translate that. >> i hope the guy at bear stearns is still answering the phone. melissa: no. >> i call it now tech depth, melissa. going into the year you wanted to buy microsoft. you want to buy google. reality there is lot of other good tech companies out there that are performing really well. in fact beating a lot of leaders. when you look at running back laye yacht, the guys are right - layout. you have to have cj spiller, doug martin, adrian peterson. the leaders. guess y what? just like tech sector those guys haven't led your team either. melissa: what do you think? >> do you want to trade? do you think you could be experts investing as well. >> absolutely. give me money. melissa: catch "the league", wednesday nights at 10:30 on
5:30 pm
fxx. do you want to know what the food truck business is all about? did you ever consider starting one as a business? tweet me and lettme know. watch me as i go inside to learn their money-making tips a bunch of rotating tegories" card. it's not the "sign up for rewards each quarter" card. it's the no-games, no-messing-'round, no-earning-lim-having, do-i-loolike-i'm-joking, turbo-boosting, heavyweighchampion- of-the-world cash bk card. thiss the quicksilver cash back card from capital one. unlimited 1.5% cash back on every purchase, everywhere, every single day. now tell me, what's in your wallet?
5:31 pm
[ chicken caws ] [ male announcer ] when your favorite food starts a fight, fight back fast with tums. eartburn relief that neutralizes acid on contact and goes to work in secon. ♪ tum, tum tum tum tums! pop in the drum of any mhine... ♪ ...to wash any size load. it dissolves in any temperature, even co. tideod pop in. std out.
5:32 pm
5:33 pm
♪77 melissa: where did you get launched today? from coast-to-coast, hitting the road hard, and it looks like there is no stop sign inside. the offerings are out of this
5:34 pm
world and fully loaded.ns naturally i had to go inside anl see what the hype was about.h watch this.lis is this a good business? >> a great business. i like it. melissa: how hard is it to find: a job, get it started?>> >> the whole 9 yards? melot of work. melissa: how much does it cost?> >> eighty to $100,000. >> we want to move around a lota lot, find different spots, build a clientele. melissa: show me how to make a killer real cheese. show me the bes. >> smart toda and pulled pork. melissa: that sounds good. really pular. >> pulled pork seasoned meat overnight. of course to know we add a little better. melissa: i was going to say to my did not see any better on there. how many of those to you sel a day? >> i would say that thousands. melissa: how much? >> about $8.
5:35 pm
a lot of stuff in it. melissa: that is a lot for a sandwich. a box. let me see it. abouta: the owner of maine melissa: let's talk about the lobster trap. you guys priced out.t how did it compare? >> is compared dramatically. getting into a restaurant and b being tied down for so long. we thought we could get in quickly and move. if the location is good, we wily stay. w melissa: buy, lease? me around $70,000. melissa: would it take to
5:36 pm
outfit? >> that was everything. a couple of extra fees, ten, $15,000. melissa: how do you decide where to go? >> the lot of is it -- a lot ofs it is now working. go t we go through los angeles and orange county.they melissa: how did you decide upod the concept? i found a great article on thist talking about food trucks of the country. whenever the local fair, they are here in new york. you can get the in tracks,ries doughnuts, grilled cheese.on >> this is what we grew up withw there was lobster involved at every dinner we had.o bri we need to bring this to california. melissa: you are the queen of business. why do you think this was a good investment? >> they are darn good-looking, and i could not resist. also, they were making a million per truck their first year of
5:37 pm
business. i had never seen -- melissa: a milon in revenue out of one truck. >> yes. >> were not even working the second truck and earning 150,000 on the second truck in profit. these are great numbers. melissa: he said i have to get in this business. is a scalable? what do you do to make it big? >> we will outdo heard there, aren't we? [laughter] melissa: good luck with that. >> we are getting into the franchise world now. we own trucks in l.a., but now we will franchise each unit so each person who runs out track and make the business and make 10150 grand. melissa: why would they want to buy a franchise when there are trucks on every corner? what is the value in buying into your concept rather than the growth cs good track? >> we have a successful brand, been voted the best food truck the last two years and was angeles. we have done some amazing things
5:38 pm
and have it down to a science. >> all of their families in the lobster business in a lobster fresh, direct every single day. waste time. after we get on the show we have so many pple that wanted to is . the mistake they made is after six months in the business they could have a giant franchise business. when i saw a million-plus in sales, i could see that going everywhere. a lot of people making a lot of profit. you are there for ten years and out of business. melissa: have you find the rht people to be in the truck? agassi in the beginning you were there. bu as you get bigger you have to adjust your baby to someone else. >> we are family guys. we build our business and staff on that whole feling of family and the trust. people that we can fin that will make what we were doing. and then push it on to them.
5:39 pm
>> we have t embrace that. >> i love with these guys. paying you. melissa: we have people in the audience looking into getting into their own business because in this economy you have to create your own future, create your own job and your own fortune. what does it costs to get into your franchise got to buy a franchise? what can you expect overtime? >> right n up front 40 and 55 grand, whether they're buying or leasing. that is the up front franchise fee. once they're in it and on their own business and are controlling it you're looking at an average of 100,000 to 150,000 per year. melissa: you are saying that sales are over a million and you'll take, 100,000. >> and the market -- >> 150 if you work the track yourself. there are other people working it, so they're making less money. the first trac of 150 because
5:40 pm
they are working it. melissa: what has been the hardest thing along the way? >> for us, just the growth. it after you go on a shark tank in all theuccess, so man opportunits. sometimes we get scatterbrained. e worst thing you can do is wast time. after we get on the show we have so many people that wanted to try our food all over the country. we opened up aistributn facility. now wehip product nationwide overnight short to door which has been another part of our business. we're going that as w well. the challenge is aood challenge. meliss that is like saying our problem ishat we are too successful. and i believe if, but there hav to be obstacl that make you doub your concept. nothing else? >> i will ve you some. >> he does n see well enough. negotiating the contracts wh
5:41 pm
the lster guys was a rough one. >> it is important. >> iid not know about lobsters. they knew about lobsters. >> went there verses the spring and summer. obviously critical. the want your franchisees' to be successful. and that is an obstacle. th challenge is what comes and then, what's actually promote. >> here learning a new business. we stumbled upon this in the learning as we go. we both hav melissa: this is an exciting new type of business they you see all over the country. an opportunity to make money. i love it. next on "money," how much "money" do you need to consider yourself of the? the results of a nationwide survey are revealed, and americans are not shortchanging
5:42 pm
their answers. at the end of the day it is all ♪ orbiting the moon in 1971. afghanistan in 2009. on the u.s.s. saratoga in 1982. male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation because it offers a superior level of protection and because usaa's commment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.
5:43 pm
5:44 pm
5:45 pm
♪ melissa: how do you define wealthy? a million dollars, $10 million? having enough to pay your bills each month?
5:46 pm
according to research, the majority of investors say wealth means $5 million. 1 million in cash. something to strive for. when it comes down to it means something different for everyone, and a lot of it may just be perspective. we brought in a -- power panel.g psychologist. 70 percent of people with a million in assets to not think that they are wealthy.be. >> a million dollars is not what they used to be. today it is really the$750,0f equivalent of 750,000 if you go back to look at what it was eve. we think of one million dollars, or one million dollars. hilariously remembered being this fantastic amount of money but given how much the value of a dollar has fallen and prices have risen, a million bucks
5:47 pm
ain't what it used to be, it is two, five, even 10 now is the new definition of what wealthy is. melissa: scott a lot of people tweete in, and we saw a huge response on twitter about this and a lot of great answers from people. a lot of peoe said it very much depend where you live. that's the true, right? >> and perspecti melissa, too. if you grew up and your parents had two cars and a summer home in cape cod and you went to a private school, whatever you associate with having a lot of money when you gro you probably don'tt feel rich unless you have that samuxury when you're an adult and i think your comment on perspective is totally right. don't forget, too, when the markets acts friskilyp or poorly you feel different about future value of cash and investments. >> right. >> in 09 and 10, i'mure people said a couple mlion bucks isn't going to be so great. now that the market is getting better, jobs are coming back, maybe $2 million is looking
5:48 pm
better because theuture value could be higher. >> i want to bring in psychologist jeff guard tear -- gardere will join us as well. we're talking about a lot about the dollar figure what the ubs studocused, one millionive million. so much it as guys were saying is perspective. is it about, you know, paying all your bills and at the end of the month not feeling stressed about that or is it about having a more lavish lifestyle than how you grew up? what do you think? how do people feel? >> i think people have really changed their perceptions about wealthhese days. melissa: yea >> i can tell you that i work th a lot of college professors where i t at the college o medicine. a lost physicians d for them, wealth is being able to pay your bills, put your kids through college and no matter where the market goe you're still comfortable enough to know that at some point you may retire, or, that you will have tenure or have a job for the rest of your life as long as you need it. so a long as you have access to
5:49 pm
money, to have the basic comforts in life, then you are wealthy. liz: jonathan, i mean a lot of people said that online as well that it was about, it was about family in the sense of being able to take care o your extended family. you know you have enough money for your kid. you know you can take care of your parents. >> anding. melissa, you are comfortable with that million, two million dollar lev. i think what we're talki about is really that what used to be called, fu money. not worrying about ail about future. at is what this notion of true with was. i think simply need more. the notiothat people can retire on a couple hundred thousand dollars for 20r 30 years at the rate prices are rising simply can't happen, we need more. melissa: scott, does the f-u money really exist because you don't worry about what happens? chances are your assets are not liquid. if the tide turned the way it did in the recession.
5:50 pm
you may hav$10 million it may evaporate or $100 million a a ton of it may evaporate? >> right. steve cohen had forget you money too and i'm sure he is possibly a little worried about it in a moment. the funny thing, melissa about that survey, i couldn't believe this, four out of fvenvestors surved are taking care of aging parents or adult kids. how about that? melissa: yeah. >> the point about taking care of family? that is anonother thing puttinga lot of post-traumatic stress disorder on people because medicare, medicd, the danger social security is in isn't exactly givi people a lot of confidence. melissa: at the same time, you want to keep perspective. we're talking a about a million, five million, median u.s. household income is $51,000. so you would have to work 90 years in order to achieve the kind of money a lot of people in the survey who are ubs wealth clients say, it's not big dollars. it's not wealthy. it is also out of touch survey, right? there are people out there in the audience watching throwing tomato at screen right now
5:51 pm
saying that's crazy, right? >> yeah, i age but i think what other peopl are look at is the fact that they're able to ow homes or own some properties. so as long as they're able to sit on those properties, will them to their children, they see tt as a form of wealth also because there will be a generation of people who are not going to be able to buy home or, if they do, they're not going to be able to have that vacation he. melissa: yeah. >> melissa, th's it. if wealth means not having to worry, a lot of my clients at capitalistpig.com who have 3 or $4 million they worry when the economy gets tough or economy goes south. even millionaires clip coupons and fill up with regular gas or pu off major purchases becau of the state of t economy. even t or three million dollars is not that kind of don't worry money it has been in generations past. melissa: scott, i will give you the last word, wealthy, what should it mean? that is big resnsibility for you to try to answer that question. go. >> i'll say. the filrs are going off here.
5:52 pm
i'll tel you, listen, wealthy to me, i don't mean to make this personal, foot, shelter, say love in your heart. i feel ptty wlthy. >> andealth. >> health is important. melissa: health to enjoy it. otherwise if you're dead it sure doesn't matter. >> i'll say $25 million. i'll go on the record melissa: at least he is not afraid to leave it all out with afraid to leave it all out with that $25 million minimum.
5:53 pm
i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't tradlike everyby. i trade like me. i'm with scottrade. nnouncer) scottrade-proud to be ranked "best overall ient experience." the energy in one gallon of gas is also enough to keep your smartphone running for how long? 30 days? 300 days? 3,000 days? the answ is... 3,000 days. because of gasoline's high energy density, your car doesn't have to carry as much fuel compared to other energy sources. ta the energy quiz. energy lives here.
5:54 pm
5:55 pm
5:56 pm
♪ melissa: you think the housing market is being hammered, take a look at this. an apartment with a rise that brings your car right to the door on any floor. a rooftop beach. these things are real. they could be yours for a pretty penny. no matter the downturn developers are still seeing dollar signs in the ultra high-end luxury market literally pulling out all of the stops, even some you could never have imagined. i would say it is a sign of a real recovery. you better to weigh in and much of the stars of the hit show million of molesting.. what is my car to ride on the elevator with me?
5:57 pm
of good living in town and. >> is a lot of advantages. one is privacy. most people don't have rises in their own buildgs. he never have to get out of your car befo you go into your apartment. melissa: aggression and to builng. >> i think is one of the greatest luxury someo in your cod have. the rest of the country has cars is attached to their homes. they're used to it. were very unique and effectively dealt. melisssa: a mighty good ride the elevator? maybe if i want to avoid to chatting with people this is the extreme way do it. how about dark city? massages, acupuncture and home cooked meals.
5:58 pm
obsess with the dark. >> and they will live there and pay more for the apartment. melissa: what is the premium? >> new development, 20%. melissa: really? the car will be from a to be is about quality of life. ople know that the economy is recovering now willing to play more for that same apartment. melissa: that is my question. the 50,000 the square-foot deck with tennis courts and volleyball court and barbeque stations, i say that the economy is bk in the builders of realize they have to do something of the top to dierentiate themselves now. people back spending money. is that when y read intohis? do you read into it that it is a bubble and there's a lot of
5:59 pm
money flooding into because of the fed in interest rates being low and another bill will come in. >> interest rates are rising for one. more and more amenities. think it's a return to luxury. is that okay for people to spend money. land costs more now tn ever before, which means apartment prices going to cost more now than they ever have before. i think there is a billion dollars worth of real estate sold the last nine months for apartments over $4 million. i don't think it's a bubble. people adjust okay spending more money for better quality of life melissa: what is the amenity you have not seen that would really sell a building if you are going to talk to build right now. >> i want like direct into my apartment pressure store. the carter rushed idea, but i want to be able to get my refrigerator and dollars have it automatically stock from the back and did his nose wit what
6:00 pm
melissa: that is a pretty ingenious idea. add that it will be that long before it becomes a reality. that is all we have got. have a great holiday. we will see you tomorrow. "the willis report" is next. ♪ ♪ gerri: hello, everybody. i'm gerri willis, and welcome to a special edition of "the willis report." if you bought something this holiday season that you are rethinking or already know that somebody will want to return it to me how you do that? personal finance expert very gibbons joins me now.i here is what typically happens. a lot of markdowns. i am worried their return al policies will be tougher thaneto ever.ugher th >> this is when you have the ee extended policy.h, but they give you a longer t

42 Views

info Stream Only

Uploaded by TV Archive on